The value of the US dollar is not just a concept that affects economists. Each time it strengthens or weakens, almost every aspect of your life will definitely be affected. Protect your wealth by knowing what to own when the dollar collapses.
What to Own When the Dollar Collapses | 10 Things to Invest in Early On
1. Foreign Stocks
One sure way of protecting yourself from the possible collapse of the dollar is to invest in overseas stock or mutual funds. This is a great way of not only capitalizing on appreciation but also receiving a currency gain.
There are a variety of ways to do this:
- The easiest of which is to use closed-end funds or exchange-traded funds (ETF). These provide investors with a quick and easy method of investing in a variety of assets. Assets in these instruments can include stocks both in developed and emerging markets, value stocks, growth stocks, and dividend-paying stocks.
- Another option is to buy foreign stocks directly. There are major foreign companies that offer American depositary receipts (ADRs) that trade on US stock exchanges. Alternatively, you can also buy stocks of American companies that generate sales abroad.
Investing in companies that do not depend solely on the US economy should prove useful if the dollar does collapse.
2. Foreign Currencies
While it is a slightly riskier investment, investing in foreign currencies is another way to go. This is only one of many great investments outside of the stock market if stocks are not for you. There are also a number of ways you can do this.
The more practical and easier route is to buy a currency mutual fund. These often come in specific foreign currencies such as the Euro or the Australian dollar.
Alternatively, you can simply just keep a reserve of the currency of your chosen country. Should the dollar collapse, then your assets are protected and you can easily exchange them for the local currency.
Keep in mind, however, that foreign currencies can also dip out of nowhere. Be aware of this risk before investing. As much as possible, look for currencies that are not largely dependent on the value of the dollar.
3. Digital Currencies
Hailed by many as the currency of the future, digital currencies like Bitcoin, Ethereum, and other similar digital blockchain-based currencies may also offer a safe haven for your wealth. This is because the value of these digital currencies is not tied to any government-issued currencies, otherwise known as fiat money.
Before getting into digital currencies, however, make sure to do your own research. The value of these currencies is extremely volatile, so you might gain money or lose some if you are not careful.
Commodities are a great way not just of preserving wealth, but even of earning it. Certain commodities like gold, oil, and other precious metals are known for assets useful in wealth preservation.
You can often purchase these with US dollars. If the dollar falls, your commodities' value goes up.
5. Real Estate
Investing in real estate is also a great way of preserving your wealth. The value of land is almost always guaranteed to be going up regardless of the situation.
Even if the dollar doesn't collapse, you can always use your real estate property to generate income by leasing it. If it does, however, then you can always sell the land later on.
Another way to invest in real estate is to look into real estate investment trusts (REITs). Companies in this sector often own properties that produce income like apartment buildings or commercial buildings. They then sell shares of their company to the public often through mutual funds.
REITs are one of the most powerful methods of investing in real estate. As an added benefit, it still offers a predictable stream of revenue even if the dollar collapses.
6. Digital-Based Sources of Income
Because of the internet, there are now tons of opportunities to establish your own digital business or find employment online.
If you're planning on starting an online business, make sure it is capable of servicing clients abroad. Similarly, if you're looking for employment online, make sure that its business is not entirely dependent on the US.
Alternatively, you can also look for your niche on freelance websites like Upwork, Fiverr, and the like. These sites often have job listings provided by clients from different countries.
7. Asset-Producing Items Such as Land
Having a plot of land with access to fresh water and crop-producing soil may be the seventh item on our list of what to own when the dollar collapses, but it is just as valuable as the rest.
The collapse of the dollar will most likely be accompanied by a recession. Even during these times, people still need to eat. The ability to get away from high-population areas, produce your own food, and even sell it to earn money increases your chances of survival a million times over.
8. Essential Survival Skills
Learning essential survival skills is crucial if you are going to survive if the dollar crashes. During these kinds of emergencies, skills like carpentry, farming, blacksmithing, and the like are all invaluable tools to have in your arsenal.
Try to develop these skills early on. They will come in useful not just if the dollar crashes, but even in your day-to-day life.
9. A Reference Library
Of course, there is no possible way to cram all that information in your head. As such, it is also important that you have a reference library you can consult if the situation deteriorates. This, like your survival skills, will also come in handy not just in cases of economic breakdowns, but even in everyday emergencies.
10. Community of Like-Minded Individuals
Having your own community of like-minded individuals is crucial if things continuously go south. Whether you have chosen to invest in developing your skills or in assets that produce goods, having a community is a great way of having people who can watch your back.
This community of individuals with the same mindset as you will act as your support system. They will be your lifeline, helping you out in ensuring one another's survival.
Here’s an infographic guide. Don’t forget to download, save, or share this handy infographic for reference:
Now that you know what to own when the dollar collapses, learn how likely it is that this catastrophe will happen with this video courtesy of IG UK:With all the economic and health-related problems the world is facing today, the possibility of a US dollar collapse is more than likely. Knowing what to own when the dollar collapses is a good way of ensuring that you still live comfortably even if such a disaster happens.
Are there other items that you think should have made it on our list of what to own when the dollar collapses? Share them with us in the comments section below!
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